Greater Manchester has struck an “historic devolution settlement” with government, opening up transport, planning and housing policies to the region.
A directly-elected mayor will be created for the region, while control of a Housing Investment Fund of up to £300m will be created and devolved to Manchester.
Manchester will also acquire greater planning power, including the ability to create statutory spatial strategies.
Additionally, the region will be granted a longer-term budget by central government to enable better transport planning co-ordination, with Greater Manchester granted control over new bus franchises and an Oyster card-style ticketing system.
The deal was struck with George Osborne, who had previously called for a “northern powerhouse” to build on the work of the Greater Manchester Combined Authority, established in 2011.
It will also include a number of public service reforms, responsibility for skills, business and health and social care.
The mayor of GMCA will appoint cabinet members from leaders of each of Greater Manchester’s 10 local authorities, with the first mayoral elections expected in 2017.
The existing police and crime commissioner’s role will also be merged with the Greater Manchester mayor’s role.
GMCA chair Lord Peter Smith said: “Make no mistake, this devolution settlement is a momentous day for Greater Manchester. It gives us greater control over our own destiny in several key areas and the ability to base decisions on local priorities and needs rather than on ‘one size fits all’ dictates from Westminster.
“This isn’t about taking powers from individual Greater Manchester authorities. It’s about powers coming down from central government to a more localised level.”
GMCA vice chair and leader of Manchester city council Sir Richard Leese said: “Greater Manchester has been in the vanguard of the national devolution debate. It was clear that an over-centralised national system was not delivering the best results for our people or our economy.
“We are extremely pleased that we can now demonstrate what a city region with greater freedoms can achieve and contribute further to the growth of the UK.
“Our ultimate ambition is for full devolution of all public spending in Greater Manchester, currently around £22bn a year, so that we either influence or control the whole amount.”
Osborne said: ”This is a massive moment for the north of England and our plan to build the northern powerhouse. This will give Mancunians a powerful voice and bring practical improvements for local people, with better transport links, an Oyster-style travelcard, and more investment in skills and the city’s economy.
“I want to talk to other cities who are keen to follow Manchester’s lead – every city is different, and no model of local power will be the same.
“The northern powerhouse is becoming a reality. We plan to make major investments in northern transport and science, now we have agreement on the first metro area mayor. This is what we have achieved in just a few months. Giving cities power is part of our long-term economic plan to reduce the decades-old gap between North and South, London and the rest.”
